Terms of trade
After firming up a child support agreement with Sally and adjusting to his new routine after separating from Sally, Luke decided that he better check in with his business and make sure nothing has fallen by the wayside while he was preoccupied with his separation.
While doing a general review of what’s been happening in the business, he comes across his business’ terms of trade. After having a quick look at the terms of trade he is shocked to see that the terms haven’t been updated in a couple of years. To make matters worse he notices that his terms of trade don’t build in any protection for his business should a customer not pay him for his goods and services. Luke decides to set up a meeting with his lawyers for advice.
At this meeting, Luke gives his terms of trade to his lawyers and explains how his business operates and what terms and conditions he would like to be in place. Luke and his lawyer discuss the importance of regularly reviewing and updating the terms of trade.
A business’ terms of trade are recorded in a written document that set out the relationship between the business and customer, and the terms and conditions that apply to the supply of goods and services.
Luke’s lawyers review his terms of trade, update them to reflect his business needs and make further suggestions on how the terms and conditions should be amended to provide clarity to both Luke and his customers. Importantly, his lawyers made sure that the terms included clauses that set out what would happen if there was a dispute, limited Luke’s liability to the customer, and detailed the business’ rights if a customer didn’t pay.
Luke now felt much more protected using his new terms of trade for his business.
